[Click e-Stock] "APR Expected to Achieve Record-High Results... Target Price Raised"

On June 24, NH Investment & Securities raised its target price for APR from 115,000 won to 170,000 won, stating that the company is expected to achieve record-high results again in the second quarter of this year.

Jung Jiyoon, a researcher at NH Investment & Securities, wrote in a report that "APR's consolidated sales for the second quarter of this year are expected to reach 291.5 billion won, up 87% year-on-year, and operating profit is expected to reach 62.1 billion won, up 122% year-on-year," adding, "Results are expected to exceed consensus estimates for both sales and operating profit."

Growth in the beauty segment is particularly notable. Beauty sales are estimated to reach 281.3 billion won, representing a 101% increase year-on-year and a 10% increase quarter-on-quarter. Of this, device sales are recorded at 95.2 billion won (up 40% year-on-year), and cosmetics sales at 186.1 billion won (up 160% year-on-year).

By region, the analysis highlights strong growth in the United States (+228%), Japan (+276%), and other regions including B2B (+296%). In particular, in the United States, APR plans to enter 1,400 ULTA offline stores starting in August this year. In Japan, sales performed well during the Qoo10 Megawari event, and the company plans to enter 3,000 Don Quijote stores by the end of the year.

Jung explained, "Based on Korea's cosmetics export data to Europe and the Middle East for April and May, it can be inferred that APR's B2B sales will also increase quarter-on-quarter, and exports to target countries will accelerate."

Meanwhile, the fashion segment recorded sales of 6.4 billion won, a 45% decrease year-on-year, and an operating loss of about 2 billion won. Downsizing of the fashion business division is expected to continue throughout the year.

APR plans to launch three new device products in the second half of the year, and related sales growth is expected to continue. Jung stated, "We maintain our 'Buy' investment rating based on the launch of new device products in the second half and the long-term outlook for expansion in the beauty sector, and raise our target price from 115,000 won to 170,000 won."

As the reason for raising the target price, Jung explained, "We have revised our operating profit estimates for 2025 and 2026 upward by 11% each, reflecting higher sales estimates for the United States, Japan, and B2B. We also applied a 20% premium to the domestic cosmetics/beauty device peer average 12-month forward PER of 22 times, resulting in a target PER of 27 times."

Jung evaluated, "The external growth rate within the cosmetics sector is truly overwhelming, and the company is still in the early stages of offline expansion. Considering the planned launches of skin boosters and medical beauty devices in 2027-2028, APR has sufficient potential for mid- to long-term growth."